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IBERDROLA and Gamesa today submitted notices to the Spanish stock Exchange commission (CNMV) to the effect that they have agreed to wind up their strategic agreement for the development of wind farms , citing the global economic scenario that has caused market conditions to change, and, as a result, the policies of both companies.

This strategic agreement, originally signed on 13 June 2008 and amended on 23 September 2009, established a series of cross options on specific Gamesa wind farms in Spain and other European countries, and the possibility of jointly carrying out the wind farm development, construction and operation activities in the same regions.

However, IBERDROLA and Gamesa, world leaders in their fields, expect to continue working together to strengthen their respective positions in the wind energy sector, as they have been doing over the last 15 years in various international markets.

IMPORTANT INFORMATION 

This announcement is not an offer for sale of securities in the United States, nor in any other jurisdiction. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.

FORWARD-LOOKING STATEMENTS

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Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of IBERDROLA, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to IBERDROLA, S.A., or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward looking statements included herein are based on information available on the date hereof. Except as required by applicable law, IBERDROLA, S.A. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.